Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q2 2020 Earnings Presentation
21 slides from Knight-swift Transportation's earnings presentation, Jul 22, 2020
Slide 1: KNX 2Q20 Earnings Presentation
Exhibit 99.2 KNX 2Q20 Earnings Presentation
Slide 2: Disclosure
Disclosure This presentation, including documents incorporated herein by reference, will contain forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward- looking statement
Slide 3: KNX Overview
KNX Overview Q2 '20 YTD 2020 Revenue (ex. fuel surcharge and intersegment transactions) (1) $ 816 M $ 1,637 M Trucking Adjusted Operating Ratio (1) 85.5 % 86.0 % • 13,382 irregular route tractors, 5,011 dedicated tractors, and 57,269 combined trailers • Dry Van, Refrigerated, Dedicated, Flatbed, Dra
Slide 4: Second Quarter 2020 Comparative Results
Second Quarter 2020 Comparative Results Knight-Swift Consolidated Q2 '20 Q2 '19 Change (Dollars in thousands, except per share data) Total revenue $ 1,060,698 $ 1,242,083 (14.6 %) Revenue xFSC $ 997,597 $ 1,122,754 (11.1 %) Operating income $ 102,167 $ 108,593 (5.9 %) Adj. Operating Income 1 $ 123,9
Slide 5: Q2 2020 Trends
Q2 2020 Trends • April volumes and rates were pressured due to reduced loads from non-essential shippers • Freight volumes strengthened throughout May and June • The strong freight conditions in June led to improved year-over- year miles per truck • Revenue per mile began to inflect positive in cert
Slide 6: Operating Performance – Trucking
Operating Performance – Trucking Trucking Financial Metrics • 85.5% Adjusted Operating Ratio in Q2 2020 compared to 85.8% the previous Q2 '20 Q2 '19 Change year (Dollars in thousands) Revenue xFSC $816,033 $900,648 (9.4 %) • Tractor count of 18,393 during Q2 2020 was 3.1% lower than Q2 2019 Operatin
Slide 7: Operating Performance – Logistics
Operating Performance – Logistics Logistics Financial Metrics • 95.5% Adjusted Operating Ratio Q2 '20 Q2 '19 Change during Q2 2020 compared to 93.7% (Dollars in thousands) during the prior year Revenue ex intersegment 1 $67,066 $80,304 (16.5 %) • 15.7% Brokerage Gross Margin Operating income $3,038
Slide 8: Operating Performance – Intermodal
Operating Performance – Intermodal Intermodal Financial Metrics Q2 '20 Q2 '19 Change (Dollars in thousands) 1 • 105.3% Adjusted Operating Revenue ex intersegment $82,699 $117,727 (29.8 %) Ratio during Q2 2020 Operating (loss) income $(4,475) $4,192 (206.8 %) compared with 96.4% the prior Adjusted Op
Slide 9: Market Outlook 2nd Half 2020
Market Outlook 2nd Half 2020 • Expect the strong freight conditions to continue with the assumption that businesses will continue to remain open • Spot rates continue to improve leading to stronger contract rates in 2021 • Supply continues to rationalize as a result of historically low class 8 order
Slide 10: 2020 Guidance
2020 Guidance Expected Adjusted EPS for the full year 2020 of $2.15 - $2.30 Guidance Assumptions • Pandemic does not cause additional widespread business closures • Revenue per loaded mile will inflect positively on a year-over-year basis in the low single digits • Miles per truck will be flat to sl
Slide 11: Appendix
Appendix " KKNIGHT JU) Swirr TRANSPORTATION
Slide 12: Adjusted Operating Income and Operating Ratio
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 1,060,698 $ 1,242,083 $ 2,185,496 $ 2,446,618 Total operat
Slide 13: Adjusted Net Income Attributable to Knight-Swift
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter-to-Date June 30, Year-to-Date June 30, 2020 2019 2020 2019 (Dollars In thousands) GAAP: Net income attributable to Knight-Swift $ 80,189 $ 79,205 $ 145,615 $ 167,1
Slide 14: Adjusted EPS Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter-to-Date June 30, Year-to-Date June 30, 2020 2019 2020 2019 GAAP: Earnings per diluted share $ 0.47 $ 0.46 $ 0.85 $ 0.97 Adjusted for: Income tax expense attributab
Slide 15: Segment Adjusted Operating Income – Trucking
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, Trucking Segment 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 879,369 $ 1,020,027 $ 1,798,430 $
Slide 16: Segment Adjusted Operating Income – Logistics
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, Logistics Segment 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 70,104 $ 82,929 $ 149,302 $ 171,
Slide 17: Segment Adjusted Operating Income – Intermodal
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, Intermodal Segment 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 82,820 $ 118,195 $ 177,551 $ 23
Slide 18: Return on Net Tangible Assets
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Return on Net Tangible Assets 1 June 30, 2020 2019 (Dollars in thousands) Total Assets $ 8,279,028 $ 8,213,584 Adjusted for: Intangible assets, net (1,412,192) (1,399,534) Goodwill (2,922,970) (2,919,219) Tangible Assets $ 3,943,866 $ 3,89
Slide 19: Adjusted Income Before Income Taxes and Adjusted Net Income
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Income Before Income Taxes and Adjusted Net Income 1 Year-to-Date Year-to-Date December 31, Year-to-Date TTM June 30, 2020 2019 June 30, 2019 June 30, 2020 (Dollars in thousands) GAAP: Net income attributable to Knight-Swift $ 145
Slide 20: Net Leverage and Leverage Ratio
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Net Leverage and Leverage Ratio 1 2 June 30, 2020 ($ in thousands) Term loan $ 365,000 Revolving line of credit 235,000 Accounts receivable securitization 165,000 Other secured debt and finance leases 86,975 Total face value of debt 851,97
Slide 21: EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA 1 Year-to-Date Year-to-Date Year-to-Date TTM June 30, 2020 December 31, 2019 June 30, 2019 June 30, 2020 ($ in thousands) GAAP: Net income $ 146,
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